Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Mercedes looks at British site for car plant

David Bowen
Tuesday 02 November 1993 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

EXECUTIVES from Mercedes-Benz visited Durham yesterday to decide whether to build the planned A-class baby car in the North-east.

Mercedes says it is considering four sites - in Germany, the UK, France and the Czech Republic - and wants to make a decision before the end of the year. Overseas sites are being investigated by the London office of Arthur D Little, the management consultant.

The German delegation was given a presentation by the Northern Development Company, which tries to attract inward investment into the region, and was also briefed by Ian Gibson, chief executive of Nissan's Sunderland factory.

The factory will build about 200,000 cars a year, making it of similar size to Nissan in Sunderland now or Toyota in Derbyshire at full production. High wage costs and the strength of the mark have already forced Mercedes to buy more components from abroad. It has also announced it is building factories in Alabama and Spain.

A move outside Germany for its first venture into small cars would, however, be regarded as a turning point for the company, whose image is heavily based on 'Germanness'. The futuristic vehicle is based on the Vision concept car displayed at the Frankfurt Motor Show.

The North-east believes it has an edge over other regions because of the success of Nissan which, though now affected by tumbling continental demand, is viewed as a model for inward investment. There are now 27 automotive component makers in the region.

However, some commentators believe Mercedes' high-profile search for a foreign site could be no more than a device to persuade the German unions to be more flexible.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in